Last Friday, US equity markets gave up all of its gains since mid-July on a panic selloff as concerns the FED might raise interest rates this month loomed following comments made by key Fed officials.

On Thursday, 8th September we have tweeted that the market may give away its gains which happened on Friday.

Will it affect the Indian market? We do think that the hike in interest rates by FED would surely affect the Indian stock market. However, technically we are in correction mode as long as Nifty closes above 8000! The first sign of worry would come in only when the Nifty closes below 8600! In fact in our last newsletter we have cautioned the members to stay away from any new purchases unless one knows the entry and exit points. We further asked the members to recall in the Hindu epic story Mahabharata in which Abhimanyu got trapped in Chakravyuha and was killed mercilessly. Technically Chakravyuha has been formed between 8824 and 8848. Yes a gap between 8824 and 8848 was formed in the mid of last week. We will have to check if it is an exhaustion gap or a runaway gap. This will be answered by the market shortly.

The market has entered a correction mode after a strong uptrend. As long as Nifty does not violate 8600 we could conclude that it is just a correction. Between 8500 and 8600 it’s a neutral zone. Technically a strong base exists at 8500 for Nifty below which the market enters a weak base. In case the Nifty breaches below 8500 levels we could see 8300 in a jiffy. All this technical predictions are given for weak hearted bulls who keep asking us about the levels of bull & bear. For the rest of the members be ready to plunge into equity n case the market enters a weak zone and settles down.

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